Fraud Deterrence Institutions Reduce Intrinsic Honesty

A-Tier
Journal: Economic Journal
Year: 2021
Volume: 131
Issue: 638
Pages: 2508-2528

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The impact of deterrence institutions beyond their immediate scope of application is unknown. Using a quasi-experiment with naturally occurring variation in inspections, we found evidence of spillover effects across contexts. We identified fraudsters and non-fraudsters on public transport who were or not exposed to ticket inspections. We measured the intrinsic honesty of the same persons in a new context where they could misappropriate money. Instead of having an educative effect across contexts, the exposure to deterrence practices increased unethical behaviour of fraudsters but also, strikingly, of non-fraudsters. Learning about the prevailing norm is the likely channel of this spillover effect.

Technical Details

RePEc Handle
repec:oup:econjl:v:131:y:2021:i:638:p:2508-2528.
Journal Field
General
Author Count
3
Added to Database
2026-01-25